The practice of buying more or selling off some stock because the price has changed, thereby influencing the average cost of a holding.
A trading term based on average prices over a predetermined period ie selling or buying on the average morning or afternoon fix in London.
An investment technique, consisting of buying the same securities at successively lower prices as the stock goes down or ‘averaging up'. By lessening the risks involved by spreading purchases over a range of prices, averaging is thought to be a mode of insurance against wide stock price fluctuations.
The process of gradually buying more and more securities in a declining market ( or selling in a rising market) in order to level out the purchase (or sale) price.
Buying more of the same shares, generally on a falling market, to lower the average cost per share. (Can also average up, thereby raising the average cost per share).
If the price of a share falls below the purchase price, an investor can buy more shares and therefore reduce the average cost per share. This is called pound cost averaging.
(See: Dollar Cost Averaging)